Today’s entry: Which South Florida or national banks have not “banned” Trump or his organizations? Any recommendations for a financial institution that doesn't play politics?
Bottom Line: Last week, two South Florida-based banks, BankUnited and Professional Bank, cut ties with Donald Trump and related businesses. The decisions to drop Donald Trump by these two South Florida banks came without explanation and were especially notable because both have newer banking relationships with the former president. In fact, both banks began their relationships with Trump after he became president.
Donald Trump began business with BankUnited in 2017 and Professional Bank in 2018. Records show the Donald Trump Revocable Trust holding about $25 million in money market accounts with each BankUnited and Professional Bank at the time they severed their relationship with him. Professional Bank also held an $11 million mortgage in Trump’s name for a neighboring property to Mar-A-Lago.
Regarding local banks, or even national banks with local service, who aren’t “playing politics”, it’s unclear. We only know what banks Donald Trump had relationships with and which ones have decided to end them. BankUnited, Deutsche Bank, Professional Bank, and Signature Bank are the banks that dropped Donald Trump. However, there are some banks with existing relationships with him. They include Capital One, JPMorgan Chase, First Republic Bank, and Ladder Capital.
Some have alleged the decisions by the two South Florida-based banks to cut ties were based on concerns over Donald Trump’s financial wherewithal. Aside from the timing, on back of Deutsche Bank’s announcement that their decision was political as they called for him to resign as President after the riot at the Capitol, it’s not evidenced at BankUnited or Professional Bank. Bank United held no liabilities, only deposits for Donald Trump. In the case of Professional Bank, Trump’s mortgage is secured by property currently estimated to be worth millions more than is owed, in addition to $25 million in deposits. Simply put, the economic argument for these decisions isn’t evidenced. They clearly made their decisions based on political considerations.
Whether it’s banks, online platforms, or retail businesses, it’s concerning that there’s been a pervasive effort to essentially blacklist a former president. I don’t advocate for boycotts, instead, I believe in consumer choice, unlike the companies who have taken to blacklisting. That being said, I do vote with my wallet and obviously, you do too.
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Parler & Twitter: @brianmuddradio